Russian Mistral Procurement Stalled

The governments of Russia and France are reportedly in a deadlock over the price of the Mistral-class vessels. Russia is expected to procure two Mistral-class ships from France under a joint venture that will lead to an additional two vesmistrsels being constructed in Russia. While an agreement was reached in January 2010, final contracts detailing costs and deadlines have yet to be signed. Negotiations are now stalled over price.

Russia is only willing to pay EUR980 million for two Mistral-class ships, while France is insisting that it get at least EUR1.15 billion. According to Deputy Defence Minister Vladimir Popovkin, the contract for all four vessels should only total EUR1.5 billion.

The issue is complicated by the fact that deputy chief of the Russian Navy Vice Adm. Nikolai Borisov signed a protocol with France in December 2010 that set the price of the contract at EUR1.15 billion. However, Borisov was supposedly not authorized to sign the document, and did so without consulting with Rosoboronexport and the Federal Service for Military-Technical Cooperation. Regardless, France wants Russia to be held accountable.

The EUR1.15 billion price tag includes the construction of the first two ships (EUR980 million), some unidentified logistics expenses (EUR131 million), and crew training expenses (EUR39 million). However, Russia wants the price to also include the cost of construction licenses for the second pair and technical documentation costs. France insists that those items will cost an additional EUR90 million.

France is expected to issue a final proposal on March 15.

Russia dismisses report of deadlock in talks on Mistral purchase

Reports of an impasse in contractual talks between Russia and France on the purchase of Mistral class helicopter carriers for the Russian Navy are false, Prime Minister Vladimir Putin's spokesman said on Thursday.

Russia's Kommersant business daily reported on Thursday that last week's contractual talks between Russian state-arms exporter Rosoboronexport and French DCSN company, which were attended by government officials from both countries, resulted in deadlock.

"This information is false. It is a large undertaking, and there are always certain issues, but I would like to stress again - this information is unfounded," Dmitry Peskov told reporters in Moscow.

Russia and France in January signed an intergovernmental agreement to jointly build two Mistral-class helicopter carriers at the STX shipyard in Saint-Nazaire, France. Another two are planned to be constructed later at the Admiralty Shipyards in St. Petersburg.

According to the Russian Defense Ministry, the contract would set out terms for the purchase of two ships built by France's DCSN and licenses for construction of two additional ships in Russia for at least 1.5 bln euros.

France is expected to put forward the final commercial proposal on March 15.

Mistrals to perform command tasks in Russian Navy

While commissioned into Russian Navy, main task for Mistral class assault landing ships will be control of naval forces, reported ITAR-TASS referring to a source in defense ministry. 

"After joining Russian Navy, basic task for Mistrals will be control over various naval assets in different operational zones worldwide, including Pacific Ocean, of course. That is going to be a sort of command centers developed at sea and controlling surface ships, submarines, and naval aviation", said the source. 

"The second high-end task for Mistrals will be delivery of Russian attack and antisubmarine helicopters (Ka-52 Alligator and Ka-27 respectively) to assigned sea- or coastal area. And only the third-priority task will be projection of marine units for landing operations", added the source. 

He also said that Mistral class helicopter carriers are supposed to be stationed at Pacific and Northern fleets. "These two fleets have the largest responsibility areas and biggest number of assets available. So far, it is planned that Northern Fleet would have one Mistral class ship, and Pacific Fleet – one or two of them. If needed, interfleet reassignments of Mistrals are possible as well", said the source. 

He confirmed that Mistral class helicopter carriers which are to join Pacific Fleet would particularly maintain security of Kuril Islands. "This is one of the high-priority tasks for Mistrals to be completed along with other branches of Russian Armed Forces", emphasized the source. 

Displacement of Mistral class assault landing ship is 21,000 tons. The ship is capable to carry 16 helicopters on board. The deck section accommodates over 40 tanks or 70 wheeled trucks. The crew is 160 men; in addition, the ship can take 450 marines on board.

President of USC refutes rumors that the company leaves Mistral talks

United Shipbuilding Corporation (USC) continues to participate in negotiations on Mistral ships; information that the company withdraws from the talks is incorrect, reports RIA Novosti citing the head of USC Roman Trotsenko. 

According to Tuesday's Kommersant, French shipbuilding company DCNS which is about to sell Mistral technology to Russia negotiates directly with Rosoboronexport, while USC which is to build two out of four landing ships takes no part in the talks. 

"Rather, we were not withdrawn from talks. That does not reflect reality. We do participate in the consortium", said Trotsenko. 

The information which had emerged in media surprised him much. 

Late in Dec 2010 Russia and France officially declared that the consortium consisting of United Shipbuilding Corporation (Russia) and DCNS (France) would construct two Mistral class ships in Saint-Nazaire and other two – in Russia under license. Russian defense ministry issued an appropriate tender in Oct 2010. 

RIA Novosti reported in Dec 2010 referring to a source involved in negotiations that the first Mistral class ship for Russia would be constructed in France late in 2013 (early in 2014), the second one – late in 2014 (early in 2015). Provisionally, the first ship would cost EUR 720 mln, the second one – EUR 650 mln. 

Assault landing ship Mistral has displacement of 21,000 tons; overall length is 210 meters; speed is over 18 knots; operational range is up to 20,000 miles; crew is 160 men plus 450 marines. Air wing consists of 16 helicopters; six of them can be simultaneously placed on the flight deck.